Markets Mixed as Iran-US Attacks Resume and Oil Prices Rise

Global financial markets turned mixed Thursday as renewed military exchanges between the United States and Iran threatened to unravel a fragile ceasefire, pushing oil prices higher and erasing a week of gasoline price declines for American consumers.

New Attacks Rattle Markets

The United States launched additional airstrikes on Iran, which responded by firing missiles at Bahrain, Kuwait, and Qatar — a day after President Donald Trump declared a temporary ceasefire “over.” A regional intelligence official involved in mediation efforts told the Associated Press on condition of anonymity that high-level talks to end the war remain underway, leaving the prospects for lasting peace uncertain.

US futures markets reflected the cautious mood. S&P 500 futures rose 0.1% before Thursday’s opening bell, while Dow Jones Industrial Average futures fell 0.1%. Nasdaq futures climbed 0.5%.

Oil Climbs Back Toward $80

Brent crude, the international benchmark, rose 64 cents to $78.66 per barrel Thursday, after briefly topping $80 on Wednesday. Before the Iran war began, Brent was trading around $72. An earlier interim peace deal had brought prices back to roughly prewar levels before this week’s escalation reversed those gains.

US benchmark crude rose 54 cents to $74.06 per barrel. For American drivers, the renewed conflict is translating directly into higher costs at the pump. The average price for a gallon of regular gasoline climbed a nickel overnight to $3.85 on Thursday, according to AAA — up 69 cents from the same time last year and reversing a week of steady declines in two days.

PepsiCo Dips, Earnings Season Ahead

In equities, PepsiCo shares edged down 1% after the company reported stronger-than-expected second-quarter revenue, offset by weaker demand in North America where consumers have been tightening budgets amid economic uncertainty. Earnings season accelerates next week when major US banks and airlines report quarterly results. The Labor Department’s weekly jobless claims report and June home sales data from the National Association of Realtors are also due later Thursday.

European and Asian Markets

In Europe at midday, Britain’s FTSE 100 fell 0.7%, France’s CAC 40 rose 0.3%, and Germany’s DAX edged 0.1% higher.

Asian markets were broadly mixed. Japan’s Nikkei 225 rebounded 1.4% to 67,743.85, with chip equipment maker Tokyo Electron surging 5.5%. South Korea’s Kospi index ended 0.6% higher at 7,291.91 after earlier declines, with SK Hynix gaining 5.3% and Samsung Electronics rising 0.2%.

China’s Shanghai Composite climbed 1.7% to 4,036.59 even as China’s producer price index rose 4.1% in June year-over-year — up from 3.9% in May, with some economists attributing the elevated inflation partly to the effects of the Iran war. Hong Kong’s Hang Seng shed 0.7%, dragged lower by losses in Apple supplier Luxshare on its trading debut. Chinese AI company Zhipu surged 11.3% after announcing a roughly $4 billion share sale.

Australia’s S&P/ASX 200 fell 0.3%, Taiwan’s Taiex dropped 0.8%, and India’s Sensex gained 0.6%.